How to Boost Your Credit Before Applying for Home MortgageCollins | June 8, 2016 | 0 | Financial Services
You can really strain yourself saving up for the down payment for your home mortgage Rogers MN loan but if you have an average credit, you are still going to have a hard time qualifying for mortgages at favorable rates that will help you buy the home of your dreams. But all is not lost; you can still repair your credit record or score in time before you apply for the home mortgage in Rogers MN. Improving your credit score will improve your chances of qualifying for mortgages and being approved for loans at affordable interest rates.
Pay your credit card debts
If you are up to your eye balls in credit card debt, then lenders are going to think twice before they approve your home mortgage Rogers MN loans. They will look at your credit utilization ratio which needs to be low as well as the debt-to-income ratio which also needs to be low for you to be a safe debt for lenders. Before you apply for mortgages, it is always a great idea to pay off all your credit balances.
Try to make more than the minimum payment levels on your credit cards every month. This is not just going to cut down on your debt load, it is also going to improve your credit score. By doing this, you are also going to save money on interest rate repayments and lenders will see that you take your debts very seriously.
Get your credit reports and analyze them well
We occasionally make certain money mistakes that leave a blot on our credit cards. When these happen, it is important that you know about it ahead of your potential lender and take corrective steps. You can get free credit reports from any of the three major credit bureaus such as Equifax, TransUnion and Experian. Check these reports carefully for any signs of inaccuracy that may impede your application for mortgage. If there are errors, you can file disputes with supporting documentation.
Don’t apply for new credit
Whenever we are moving into a new house, we may want to make some new purchases such as new furniture pieces, a new car, new interior décor along other “feel-good” acquisitions. However, make sure that you apply for new credit cards only after you have locked down your mortgage payments. When applying for home mortgage Rogers MN loans, it is important to have credit reports which are as clean as possible.
Buy with a sense of purpose
When you are shopping for a home mortgage, do not let the search continue for a long time otherwise the FICO scores will begin showing as separate inquiries on your applications. This will negatively impact your credit score. When shopping mortgage, keep the search as brief as possible and also ensure that it is focused. It is generally advisable to get pre-approval for mortgage before you begin scouring the market for homes.
Putting in the down payment for the home is going to hit your pockets hard and you may be tempted to revert back to relying on credit. Even after you have made a down payment on your home, continue saving aggressively for financial security.
You can actually learn more, just check out Equity Source Mortgage or visit http://equitysourcemortgage.com/home-mortgages-and-loans-in-our-minnesota-markets/home-mortgages-and-loans-in-rogers-mn.